Senior citizens of the country are always respected and it is an important factor to secure them financially. It is hard for seniors to do jobs or business as they are old and physically weak. A term life insurance for seniors can help them to stay protected financially, it is important for funeral cost and outstanding debts.
Who Are Eligible for Term Life Insurance?
Seniors starting from 60 years to 90 years are eligible for senior term life insurance. However, after 80, a term plan is not feasible because of its price.
Terms Available for Seniors
Seniors can choose a 5 to 30 years term policy. You should always look forward to a cheap policy and maximum coverage that can fulfill your requirements.
Premium rate varies depending on some factors like health condition, policy time period, monthly payment amount, alcohol status, etc.
Related: Life Insurance 101
Advantages of Term Life Insurance for Seniors
This policy is popular among those people who just become seniors because there are several benefits of it. You can get the maximum benefits from it by paying the minimum amount of money.
Let’s discuss the benefits in detail:
The coverage of this policy is quite good and enough to secure an entire family. You can easily get coverage of up to $250,000.
For paying the funeral and burial expenses this coverage is more than enough because a US family spends around $9,000 per month for living and the burial package starts from $10,000.
Affordable Premium Rate
Without any doubt, the monthly premium of term insurance is lower compared to any other policies. The monthly premium is low because there is no relation to life expectancy like the whole life insurance policy.
It is preferred to buy a policy when you are between the age of 40 years to 60 years because the premium increases along with the age.
If you seek the plan for seniors over 80 you will face many difficulties with the premium rates. Health is the biggest risk factor for a senior term life insurance so if you become older you will be considered as a high-risk client to the underwriter.
Flexible Time Period
Term life insurance always offers a flex-able time period. You can choose the term you need. You may go for 10 years, 20 years even for 30 years as you actually need.
You will pay money for a fixed period of time and after that, you will get the benefits. It is helpful for all the funeral costs and debts.
Easy to Get
Getting term insurance is easy. Most of the insurance companies are offering this. As the demand for this policy is high, the insurers are always in competition to offer affordable packages so you can take advantage.
Like all other policies, it has a few drawbacks that you must consider while purchasing the policy.
- You can’t withdraw any money that you are depositing every month as the premium.
- As for the whole life insurance policy, there is no cash value.
No Medical Exam Term Policy for Seniors
We have discussed the advantages and disadvantages of term policy but what will happen if you have a health issue? No physical exam plan is the solution if you have a serious health issue.
This policy is always known as guaranteed acceptance life insurance for seniors where you will never have to give an answer regarding your health.
Premium becomes higher when you don’t agree to give any medical exam. The insurance premium will increase three times for no physical exam policy.
Before you purchase a term life insurance for seniors over 60 to 90 years, make sure you compare the rates from different providers to maximize the benefit.